Tuesday, May 4, 2010

New Adobe Flash Player could change how online banks fight fraud

A report from Gartner highlighted how the reliance on Flash cookies as an authentication mechanism to identify legitimate users and block unauthorized or fraudulent access may need to change with the release of Adobe Flash Player 10.1, scheduled for release later this year.

The updated version’s “Private Browsing” feature will make it easier for users to clear Flash cookies after a Web session. While the feature may be good for privacy, it may force online banks and e-commerce businesses to find something else to rely on for their authentication process. Said Gartner analyst, Avivah Litan:

“In my opinion, this is a big deal in the fraud world. Many banks, card issuers and online retailers rely in part on device identification to successfully detect fraud. And in many of these cases, the device identification they use is based on Flash local storage.”

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